In Some Cases, Tradable Pollution Permits May Be Better Than

Multiple Choice

In some cases, tradable pollution permits may be better than a corrective tax because

A) pollution permits allow for a market solution while a corrective tax does not.
B) pollution permits generate more revenue for the government than a corrective tax.
C) pollution permits are never preferred over a corrective tax.
D) the government can set a maximum level of pollution using permits.